Nicosia, Cyprus. Cyprus recorded a budget surplus of €1.24 billion in 2025, according to preliminary fiscal results released by the Cyprus Statistical Service. The results were audited and verified under the European Commission’s Excessive Deficit Procedure framework.
Surplus and debt levels
The statistical service said the surplus corresponds to 3.4 per cent of GDP, while public debt stood at €20.08 billion, equivalent to 55 per cent of GDP.
Government revenue increases
Total government revenue in 2025 increased by €1.17 billion, or 7.9 per cent, reaching €15.92 billion compared with €14.75 billion in 2024.
Revenue from taxes on production and imports rose by €62.0 million, or 1.3 per cent, to €4.74 billion, while net VAT revenue declined by €16.0 million, or 0.5 per cent, to €3.15 billion.
Social contributions increased by €385.4 million, or 8.5 per cent, reaching €4.91 billion.
Revenue from taxes on income and wealth rose by €379.1 million, or 10.0 per cent, to €4.18 billion.
Other current transfers increased by €89.9 million, or 22.9 per cent, amounting to €483.1 million.
Revenue from the sale of goods and services rose by €182.3 million, or 20.5 per cent, to €1.07 billion.
Capital transfers increased by €35.7 million, or 10.6 per cent, to €372.6 million, while property income receivable rose by €37.0 million, or 30.1 per cent, to €159.9 million.
Government expenditure rises
Total government expenditure in 2025 increased by €1.37 billion, or 10.3 per cent, reaching €14.68 billion, compared with €13.31 billion in 2024.
How do you think rising revenues and higher expenditure could affect Cyprus’ public finances going forward?
